Citi starts Believe with 'neutral' as expected squeeze out limits returns

Believe SA

02/09/2024 09:52

** Citigroup initiates French digital music company Believe
 BLV.PA  with "neutral", as a likely squeeze out by EQT-led
 EQTAB.ST  consortium offsets the group's growth potential
    ** Citi points to Believe's focus on digital as a major
tailwind, with organic growth expected to ramp up and return to
its 15-20% historical levels from 2025
    ** It expects Believe to benefit from the development of the
artist services market; "We see Believe, with its tiered service
offering, extensive geographic footprint and efficient
technology/data-powered platform, as a key enabler of this
growth"
    ** However, it says the potential return on investment is
limited by the expected squeeze out from the consortium, which
currently owns 94.99% of Believe's share capital
    ** Out of six analysts covering Believe, one rates the stock
"buy" and five "hold"

 (Reporting by Alban Kacher)
 ((alban.kacher@thomsonreuters.com))